CHICAGO — According to data analysis by Statista, a global data and business intelligence platform, U.S. energy costs—including electricity, natural gas and fuel oil—have been on an upward trend over the past several years.
The increase in prices has been felt by individuals and businesses, including laundry and linen services. One method to help operators keep energy costs as low as possible is to conduct an energy audit.
This audit is a systematic assessment of a facility’s energy consumption and expenditures. It is an examination, evaluation and ultimately recommendations from an exercise or series of inspections of industrial and commercial properties.
“We use an energy audit to find opportunities for improving energy efficiency and reducing costs,” says David Bernstein, president and “chief propellerhead” of Propeller Solutions Group, a provider of laundry engineering, training and consulting services based in Livingston, Texas.
This can involve analyzing utility bills, evaluating equipment performance, examining preventive maintenance practices, metering and measuring energy usage (where possible), and identifying areas for process improvement throughout the facility, particularly in production areas.
Gerard O’Neill is president and CEO of American Laundry Systems (A Division of E&O Mechanical Inc.), a laundry consulting company based in Derry, New Hampshire. He says the emphasis during these types of inspections in the laundry world is to uncover any and all energy losses.
Pertl & Alexander, based in Manilus, New York, specializes in the design and management of laundry, housekeeping, textile, and valet operations. President Matthew Alexander says an energy audit typically “focuses on MEP (mechanical, electrical and plumbing) process systems, production equipment and operating practices.”
OUTSIDE FIRMS
Bernstein says bringing in an outside firm, typically a laundry industry consulting firm or a consulting firm that specializes in energy audits, for such an audit can provide valuable, unbiased insights into a facility’s energy usage and opportunities for improvements and savings.
“Outside firms have no financial stake in equipment upgrades or operational decisions (such as better scheduling or other process improvements),” he says, “thereby ensuring that any provided recommendations are based solely on data and industry best practices rather than internal biases.”
Outside firms also bring experience and a broader perspective than an internal audit team, Bernstein says, based on having worked with a wide variety of facilities and helping them to better benchmark performance against similar operations.
Additionally, an external audit can lend credibility to proposed changes, making it easier to justify capital investments in energy-saving initiatives or providing gravitas when negotiating with utility companies.
“That said, outsourcing an energy audit also presents its own challenges,” Bernstein points out. “In some cases, management or ownership may bristle at providing access to sensitive operational data, which can raise confidentiality concerns, especially in competitive markets.
“Furthermore, external auditors disrupt day-to-day operations, requiring staff to allocate time for interviews, data collection and walkthroughs. Some facilities may also find implementation gaps, where auditors provide recommendations but leave execution entirely to the facility, requiring additional internal resources to act on findings.
“In these cases, it can be helpful to establish a phase two scope of services and fees in advance so that there are no surprises down the road.”
Despite these challenges, Bernstein believes a well-structured engagement with an outside firm, including clear confidentiality agreements, a defined scope of services for the audit as well as next steps, can help ensure maximum value with minimal operational disruption.
“If the outside firm is a ‘laundry engineering’ company, then the benefits are tremendous, assuming the auditor is well-versed in laundry operations and laundry engineering,” O’Neill says. “If we assume that is the case, then the audit should result in significant reductions or savings in the ‘big 3’: electrical, natural gas and water.”
On average, an operator should see a 20%-plus savings across the board, he says. In some circumstances, the percentage increases to 50-60% if the audited plant and equipment meet the criteria.
“A side benefit that always shows its face during energy audits is the safety factor,” O’Neill points out. “Inevitably, there is an unsafe working condition discovered due to some kind of inefficiency (usually electrical).
“The challenges are in finding a company with the right credentials, knowledge and experience, a very rare commodity these days. All consulting companies are not created equal. Some focus on the business and financial side of the laundry world; some focus on the production side and time, motion, efficiency, studies, etc. Picking the right type of consulting company for the job is critical.”
Alexander points out that a building energy audit is typically completed once every 10 years and requires airflow and electrical measuring devices, burner analyzers, temperature and humidity loggers, infrared thermometers, flow meters, and airflow measuring devices, which most building owner/operators do not have.
Therefore, hiring an outside organization specializing in building energy audits is typically the best alternative for most building owners/operators.
“Laundries with highly skilled engineering departments are conducting energy audits on an ongoing basis, monitoring and maintaining facilities and machinery to a high level using measured utility consumption and production data to analyze and improve efficiency,” Alexander says.
“Many laundries, however, are staffed with engineering and technical support only sufficient to complete basic preventative maintenance. For operators with relatively limited engineer resources, an outside firm can bring the requisite operating and technical expertise to effectively identify issues and make recommendations for improvement.”
What should a laundry look for in an outside auditor?
“I strongly believe that our highly specialized industry demands auditors who have industry-specific knowledge, as well as objectivity and a structured approach to data analysis,” says Bernstein.
Energy audit firms that lack industry experience may not fully understand process-specific inefficiencies such as the impact of moisture retention, operating ironers at proper temperatures and pressures, etc.
“With this in mind, laundries should prioritize auditors with direct industry experience and a proven track record with measurable results, ideally supported by case studies or client references demonstrating actual energy savings,” suggests Bernstein. “The firm should also offer a clear audit process, detailing how they collect data, analyze consumption patterns, and quantify potential savings, ideally using benchmarks from similar facilities.
“As a bonus, a consulting firm with a background in process improvement, such as Lean Six Sigma, will provide additional benefits by providing a list of current state observations and recommendations for future improvements throughout the facility that can oftentimes result in substantial savings.”
Beyond technical proficiency, he suggests laundries seek auditors who are independent, unbiased, and have no financial interest in selling equipment.
“While a commitment to [capital expenditure] may be necessary, a confident auditor will provide fact-based recommendations without pushing unnecessary upgrades,” shares Bernstein.
“Definitely look for an engineering-based consulting company that has the knowledge and experience with the laundry ‘big 3’ utilities: process water, electrical, natural gas or propane-operated equipment, and associated systems,” says O’Neill.
“This company should have experience in laundry operations, be experts in the field of laundry equipment (both production equipment and mechanical room-based equipment), and a background in mechanical/electrical engineering and building-related systems (HVAC, heat pumps, lighting, etc.) would be recommended or preferred.”
As with hiring out any work, contractors should be qualified based on their training, experience, resources and references, Alexander says.
“Ideally, the contractor will be well-established, have a minimum of three to five years of experience conducting energy audits, has received specialized training, and has all required tools, materials and equipment required readily available,” he shares.
Check back Thursday for the conclusion about self-audits. Click HERE to read part 1 about the audit process and frequent findings.
Have a question or comment? E-mail our editor Matt Poe at [email protected].
